First please tell me what is the purpose to go Global ? Either to make more profit(if yes; what will be limit for induction year) OR something else? Without these details, all solutions given by anybody are illusive. Please give these details & then only something constructive can be done.
1) although figures of SIF reflect a lot of opportunity at home turf which should be encashed by regional promotional strategies and slight modification in product presentation.nothing should stop them from exploring global market
2) SIF should explore the global arena by entering into licensing agreements with mid-size food companies in the US and the UK for carrying out production and marketing operations in those countries. 3)SIF should use the presence of electronic media ...when indians can be influenced to eat burgers & french fries why not others .All we need is an Attitude, knowledge of population ,A FINE MARKETING STRATEGY & utilise our skills to make roads in burger lanes.
First SIF should decide on the countries to push the products. Factors to be considered are:Indian Population,Food habits. secondly how?? i believe they should export the products as the authenticity of the product will not be lost. thirdly logistics???how will they reach to the end customer. mostly in western world the hypermarket is the place where people shop. so the product has to reach to shelves of hyper market. AS the product is a perishable one proper care has to be taken. reverse logistics have to be worked out to get back the expired things. this can be done by outsourcing the distribution to some distributors in the countries targeted. marketing is the important aspect as there are already many players in the developed markets. The main advertisement should revolve around the authentic product and MADE IN INDIA tag which might draw the attentions of indian habitants and people who are drawn to indian food in those countries.As the product is perishable SIF should also think on implementing ERP if they are going global.They should tie up with the distributors of other countries to see the demand so that the supply can be adjusted.effective customer Reponse is an important aspect that SIF should think on.Packing has to be taken care as there are different norms for different countries. it being a food product there are many licenses to be taken from different authorities like FDA in US.by taking all these factors into consideration SIF can become a gobal player as th
Present situtation 1. High Inventories: 30% of sales, this include finished and raw material inventory. But with limited shelf life products it is a huge concern. 2. Decreasing Capacity Utilization: Increase in competition from domestic players and increase in capacity seems to have broought down the utilization to below 90% (figure in 1998)
Mr. Krishna could be grappling with these issues and hence looking for newer markets. At the same time these issues help in defining the launching strategy. To optimally exist in the market SFL should initiate with exporting its three innovative products by tying-up with the distribution agency. Focusing on innovative products could help in creating the niche and brand recognition leading to a sustainable strategy. At the same time, higher percentage of organized retail as compared to emerging markets will help them to streamline its distribution strategy by aligning with another agency. Lastly and most importantly,one need not launch the products in all the regions simultaneously. The decision should be based on the following analysis
TARGET EVALUATION PARAMETERS REGIONS --------------------------------------------------------------------------------------- ; |Lead time for Distribution cost Intensity of Number of South Indians |transportation competition (potential customers) 1. SA | Low Low Medium/High
RE:Globally Innovative
by Nimit jain on Jun 16, 2007 11:56 AM Permalink
Is there a error on the page? My solution was 50 words lesser than the limit of 500 words. Still i cant see the whole solution. Can anyone indicate this anomaly?
Go Global: The SIF must thinkof going global.Because we must be optimistic. initially it should go on a ranchise basis. Once it is fully satisfied about the arrangeent thenthe company can think of investing on a sharing basis. The places / countries have to be chosen carefully. Places like U.K ,South east Asian countries are quiteO.K. Indian Rural Market:It can penetrate slowly like Coca cola and pepsi.First target the mid size and small towns where normlly villagers come and buy grocery. Secondly it should target the places where other than south Indiand are predominant.Best of luck to Mr Krishnan and his team of SIF. mantenapraju@rediffmail.com
Yes, It is wonderul idea to go Global. it is advisable to go global by entering in to Joint Venture or Agreemnents with Producers loProduce more in India and export to other South Asian countries, the US and the UK using the services of distribution agencies based on these countries so that the earnings of the Company can be maximised
Looking at the growth charts that SIF has achieved even after decline in its initial stages shows that SIF has the potential to make it globally and the products they will be accepted globally coz Indian Food is a highly appreciated and liked food than anything else.
If they have to enter the global market, they have to study each and every aspect of the market where they are planning to enter, the investment they need to make, the labor cost, type of product, and last but not the least profit.
If they have to go global, they have to be ready to face a stiff competition over there from competitors who are already established in that market.
SIF should look for partners who are well established and have a 75:25 share over the market so that the brand name SIF is not taken away by the partner coz that is the name that each and every one globally will know when they use the product.
Marketing the brand makes a lot of difference nowadays and SIF should hire an agency which is known globally and appreciated globally for their marketing capabilities, that can establish their name globally.
Mr. Krishnan should make a trip around the places where he is planning to start and study in detail each and every aspect of that market and whether it will be right to start in that place.
With all said, I would like to tell one thing, SIF has the potential and will be a global brand in the coming years and its products will be appreciated globally.
With world becoming a global village, there are good prospects for SIF to go global.. need to check out with following points 1 List out the potential markets like US, UK, SEA etc 2 Analysis of end-customer/ manufacturing price in all scenario...like production in India or abroad, duties, licensing etc 3 Try specific target areas within target countries having Indian population (major target) 4 Look for competition over there in terms of food quality, packaging etc 5 Find out the wholesalers/ distributors in target markets 6 Initiate withs some added schemes (free on purchase) 7 Advertise and branding with a check 8 Motivated sales force is always a need = choose some Indians for that = mind matching 9 Be confident...go and get it
There are two issues that seek attention. First- should SIF be a global player. Second- Why ignore the rural market in India. The first answer would be in the affirmative. SIF should go global. It begs a question what model should it follow? A contarian thinking should help.Instead of setting up separate production units or licensing to foriegn established players it would be better to identify a home maker to whom the production could be outsourced to produce fresh batter for the households in near vicinity. Cost of establishing such a venture would be drastically cut down with a fifty - fifty arrangement for finaces,such bearing the cost of the machinery and recovering the cost over a period of time by the company.It would be fresh and there would be no requirement of costly packakging. This would fire the entrepreunership latent in the hosuewife and the batter would be fresh. It would give the housewife a sense of ownership and would indirectly contribute to marketing by her circle of friends/clubs by word of mouth advertising. The survey to be carried out to identify neighbourhoods with large population of Indian diaspora.A separate ad campaign highlighting the positive health benefits of the product and snacks would certainly endear the product to the Western customer too.This could be done once the sales has reached a target. Regarding the second issue of rural penetration in India identify villages or small towns with a sizeable population and tie up with small hot
Going global, main thing is how he can make the people to buy a new product. for that there are some points to collect : 1) Needs to decide after sorting out the list of countries by having a data of number of Indian Origin living abroad 2) apart from that, Which part of the country most of the population residing 3) In starting no need to make production house at that country, as it cost much and risk a lot. So start with Export the product. 4) Will have to make list of the competitor and their product 5) Find out the wholesaler who are already in the same market, and introduce the items with less margin for SIF and much margin for the wholesaler (keeping in mind the cost to the customer should be less than exixting product) 6) Add some milage points methods - (i.e- give them with chart after every purchage of product - after accumulating points or purchase of product by a individual more than 100$ in month, will get 5$ or 10$ product free.or international phone card with every product for 2 minutes etc . . )
through this way , they can enter the new market, and grudually they can increase their volume, and if the market reply is good, they can think on starting production center in that country, keeping in mind the cost of production, tax, salary of worker etc.. Regards...Navin Sinha - happysinha@hotmail.com
